Briefs
Play
Autoliv expands air-bag production with new plant
To support the rapid growth in vehicle production and air-bag installation rates in Asia, Autoliv Inc, a global leader in automotive safety systems, has begun construction of an air-bag factory in Chon Buri.
The new facility will be adjacent to Autoliv’s current air-bag facility in Thailand and will be set up as a campus concept with shared resources. The new facility will cover 4,800 square metres. Its launch is planned for September. Investment in this plant is US$3 million (Bt89 million).
Forecast air-bag-module volume in 2013 is 1.5 million units, with volume expected to increase to 3.5 million units by 2015.
This would represent a 10-per-cent increase in Autoliv’s Asian air-bag manufacturing capacity of 3.2 million units in 2012.
Autoliv expects a further increase in air-bag installation rates as the new Asean NCAP (New Car Assessment Programme) takes effect in the coming years.
We Retail set for leasehold deal with propery bureau
We Retail’s board of directors has approved entering a 30-year leasehold contract with the Crown Property Bureau for a plot covering 5 rai 61 square wah (8,244 square metres) on Sathorn-Kallaprapruk Road, worth Bt141.15 million.
The board also approved the construction of a community mall named Metro Westtown with total construction value not exceeding Bt206 million, chief executive officer Kampol Tatiyakavee said.
Fitch Ratings upgrades outlook of AEONTS
Fitch Ratings (Thailand) has revised the outlook for consumer finance company Aeon Thana Sinsap (Thailand) (AEONTS) to positive from stable.
Fitch says this reflects the company having withstood several stressed environments as evidenced by manageable delinquency and adequate capital ratios during the global economic downturn in 2008-09 and major flooding in Thailand in 2011.
AEONTS’ profitability in fiscal 2012 (ended February 2013) rebounded strongly from the prior year, driven mainly by loan growth and no extra provisioning.
Fitch expects further improvement in net profit in the current fiscal year due to increasing new lending, continued manageable provisioning cost, and expanding fee-based income.
Fitch also expects profitability to benefit from several initiatives, including introducing an e-commerce business model to increase convenience and accessibility of its services, and lower operating expenses. In line with its parent Aeon Group’s business model in Japan, AEONTS will increase its focus on fee-based income via the acquisitions of insurance brokerage and service subsidiaries in mid-2012.
While the company’s plans to expand its overseas investments into neighbouring emerging markets may pose operational and financial risks, its experience in the consumer finance business gives Fitch comfort that contributions will be positive, albeit modest in the near term.
Bt2-tn scheme needed: minister
Transport Minister Chadchart Sittipunt, though concerned about corruption, insists that the country must proceed with the Bt2-trillion infrastructure investment scheme or lose several opportunities.
At a public seminar yesterday on “How to Invest Bt2 Trillion Transparently and Efficiently” organised by the Thailand Development Research Institute, the minister reiterated that the investment would lower the country’s logistics costs, boost economic growth and create jobs. He also believes that it will boost the country’s competitiveness in terms of infrastructure, which is now ranked at 49th in the world.
He expressed readiness for public scrutiny and promised fair median prices.
Sumet Ongkittikul, TDRI senior researcher, voiced his support for the investment, particularly in the rail network, which has not been improved for a long period. However, he suggested the government spend more time studying the viability of the high-speed-rail projects. The researcher also stressed the need for dissemination of information involved, to facilitate public scrutiny.
19-yr high for SET
The SET Index yesterday hit another 19-year high, gaining 1.36 points or 0.08 per cent to 1,622.48 points.
New highs were registered for four straight days this week, extending the Stock Exchange of Thailand’s three-month gain to 10.05 per cent.
Global bourses were boosted as investors speculated that central banks would maintain stimulus measures as the Group of Seven finance chiefs meet. The weakening of the Japanese yen against the US dollar also attributed to the spike.
G-7 nations meet
Finance ministers and central bank chiefs from the Group of Seven leading economies started talks yesterday on spurring growth, amid US-Europe divisions over the scale of austerity.
The G-7 – comprising Canada, France, Germany, Italy, Japan, the United Kingdom and the United States – is expected to build on last month's wider Group of 20 meeting, while looking ahead to next month’s G-8 heads of state summit in Northern Ireland.
The foreign-exchange market is also likely to feature high on the agenda after the dollar topped 100 yen for the first time in more than four years, as Tokyo’s aggressive stimulus efforts to reflate the Japanese economy continue to depress its currency.
